Moody's shifts Kraton view to stable

Moody's Investors Service said it changed Kraton Corp.'s outlook to stable from positive. At the same time, Moody's affirmed Kraton's B1 corporate family rating, B1-PD probability of default rating and other debt instrument ratings. Kraton's speculative grade liquidity rating is downgraded to SGL-3 from SGL-2.

"Kraton's B1 CFR with a stable outlook balances the challenging market environment and lower earnings guidance with substantially reduced gross debt following completion of the sale of its Cariflex business in March 2020 and management commitment to a prudent financial policy. Kraton's debt leverage will continue to support its credit rating. Its cost savings and expected free cash flow will help weather against demand weakness and feedstock volatility in 2020," said Jiming Zou, a Moody's vice president and lead analyst for Kraton, in a press release.

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